FX.co ★ Gold challenges important short-term Fibonacci resistance

Gold price has broken above the short-term bearish channel. This is a good sign. However Gold price is now challenging important Fibonacci resistance and cloud resistance. If Gold price turns lower from current levels, then the chances of breaking below $1,675 will increase dramatically.

Red lines - bearish channel

Gold price is trading above $1,700 again and it is now challenging the 61.8% Fibonacci retracement of the decline from the 2020 highs. Breaking above $1,715 will open the way for a move towards recent highs and why not break them. This break out above the 61.8% Fibo will coincide with the break out of the 4 hour Kumo.

Price is challenging the Kumo's upper boundary resistance. A rejection here will be a bearish sign. Support is found at $1,700 and $1,684, A 4 hour close below any of these two levels will bring in more sellers. Something like that will increase the chances of breaking below $1,676 and push price towards $1,630.